SUPERFAST BROADBAND PROVISION

OPEN MARKET REVIEW

June 2014

Request for Information

iNorthumberland: Northumberland County

  1. Introduction

The iNorthumberland project is a Northumberland County Council project responsible for maximizing the delivery of superfast broadband throughout the county. During 2013 iNorthumberland announced its plans to achieve a 91% rollout of superfast broadband by December 2015. The 9% of the county without superfast broadband at the end of this period relates to approximately 14,300 (figures derived from LLPG database).

In support of revised government broadband policy the iNorthumberland project was allocated additional funding as part of Broadband Delivery UK’s Superfast Extension Programme. The iNorthumberland project is now planning an additional phase of activity to increase the broadband coverage reach a more ambitious target of 95% of homes and businesses with superfast broadband service by 2017. We aim to complete procurement in 2014 and for the extended deployment of infrastructure to begin as soon as possible.

Therefore we are commencing an Open Market Review (OMR) to establish existing and planned (next 3 years) commercial coverage of broadband services in Northumberland by all existing, and prospective, broadband infrastructure providers. We intend to use the information gathered to define the Intervention Areas(IA)to be targeted by a secondadditional phase of activity. Once definedwe will undertake a State Aid public consultation for a minimum period of 1 month on our proposed IA.

The purpose of this document is to set-out our Request for Information as part of the OMR.

  1. State Aid Framework

Please note: this section provides a brief introduction to the State Aid Framework for the purpose of informing responses to this Request for Information. Parties may wish to obtain their own professional / legal advice on the application of the State Aid Framework when submitting a response.

The European Union State Aid rules are designed to ensure that any use of public funding (‘State Aid’) is targeted at market failures and ensuring positive market outcomes (e.g. more/faster broadband coverage, reducing the ‘digital divide’), while minimising any distortions of competition.

The State Aid rules require public interventions to be targeted so as to limit the risk of crowding-out or dis-incentivising existing and/or credible planned private sector investments that would otherwise meet the desired policy objectives. In the context of broadband, State Aid rules require using public funding only to enhance broadband coverage in geographic areas where there is clearly market failure, often a result of a lack of economic incentive for commercial operators to invest

Guidelines for State Aid can be found at: Planned public interventions can seek clearance under the State Aid rules directly from the European Commission (EC), or (as is the case with this proposal) seek clearance under a national scheme pre-approved by the EC. The EC’s State Aid decision on the ‘National Broadband Scheme for the UK C(2012) 8223’ can be found at:

State Aid compliance with the National Broadband Scheme for the UK is the responsibility of the National Competency Centre (NCC), part of Broadband Delivery UK (BDUK) within the Department for Culture, Media and Sport (DCMS).

The EC State Aid Guidelines distinguish between two types of broadband networks: Basic Broadband networks, and Next Generation Access (NGA)networks.

Basic Broadband networks are generally those based on currently widely-deployed technologies such as fixed wired telephony networks (using ADSL/ADSL2+ technologies), non-enhanced cable TV networks (e.g. DOCSIS 2.0), mobile networks (2G/3G (UMTS)), fixed wireless access (FWA) networks, and satellite networks.

NGA networks rely wholly or partly on optical elements (optical fibre) and are capable of delivering an enhanced broadband capability compared to existing Basic Broadband networks.

The EC Guidelines allow for the possibility that advanced wireless technologies (e.g. LTE-Advanced) could be a viable alternative to wired NGA, but only if certain conditions are met. Further guidance on NGA technologies is available from the BDUK NCC at:

The EC decision on the National Broadband Scheme for the UK requires that public funding granted under the scheme shall ensure a ‘step change’ in broadband capability (typically providing at least a doubling of average access speeds).The EC Guidelines also distinguish between geographic areas on the basis of current or planned (next 3 years) broadband infrastructures thus:

  • ‘White’ areas are those in which there is no broadband infrastructure and none is likely to be developed in the near future;
  • ‘Grey’ areas are those where one network operator is present and another network is unlikely to be developed in the near future; and
  • ‘Black’ areas are those where there are, or there will be in the near future, at least two network operators.

This geographic mapping of White/Grey/Black areas is to be carried-out separately in relation to Basic Broadband networks and NGA networks.

Public interventions to provide NGA networks is generally permitted in NGA White areas, only permitted in NGA Grey areas under limited special circumstances, and generally not permitted in NGA Black areas. Similarly, public interventions to provide Basic Broadband networks is generally permitted in Basic Broadband White areas, only permitted in Basic Broadband Grey areas under limited special circumstances, and generally not permitted in Basic Broadband Black areas.

We plan to define our Basic Broadband and NGA Intervention Areas to target Basic Broadband ‘White’ areas and NGA ‘White’ areas, respectively.

  1. Request for Information

This Request for Information is part of our OMR process and is intended to gather information on existing and planned (next 3 years) broadband deployments to help us to define our IA,in which we would plan to utilise the additional public funding we have secured to further extend broadband coverage across county of Northumberland.The OMR is a precursor to the formal State Aid public consultation on our proposed IA. The OMR process is not a specific requirement of theEC Guidelines, but is regarded as good practice to help to inform the definition of the IA prior to a State Aid public consultation, which is a requirement of the EC Guidelines.

This Request for Information is being sent to all known broadband infrastructure providers who provide or intend to provide services in the county of Northumberland. This includes those providers that currently operate broadband infrastructure, and any providers who have previously registered a potential interest in investing in broadband infrastructure, in the region. We have also published the OMR Request for Information on our website, please see:

  1. Responding to this Request for Information

The information we are requesting is specified in section 5 of this document. A spreadsheet template is attached, which is our preferred format for receiving your responses. However, if you prefer to submit your response in an alternative format, and/or if you wish to provide supplementary information in another format, we would be pleased to receive it.

When responding to this request, we would be grateful if you could confirm your organisation’s name and address, as well as the name, position and contact details of the person responding on behalf of the consultation. We also request confirmation from an authorised signatory that the information provided is suitably accurate and up-to-date.

We require responses to this Request for Information not later than 25th July2014.

Please send your responses to:

OMR Response,

Arch Digital,

Ashington Workspace,

Lintonville Parkway,

Ashington,

Northumberland,

NE63 9JZ

or via email to:

Please note that any information you provide in your response will be treated as commercially confidential to your organisation. However, it may be necessary to share some or all of your response in confidence with professional advisors and other parties as required to obtain State Aid approval. We are also subject to certain legal obligations to disclose information in certain other limited circumstances.

It should also be noted that it is a State Aid requirement to utilise the information provided to produce State Aid maps to define White/Grey/Black areas for Basic Broadband and NGA. These maps will be used to represent our IA and the maps will be published as part of our State Aid public consultation. However, the published maps will show the aggregated White/Grey/Black Basic Broadband and NGA areas, not the data provided on a per-operator basis.

If you have any questions about this OMR Request for Information process, please contact: .

  1. Information Requested

This section specifies the information you are requested to provide in response to this Request for Information.

The attached spreadsheet template provides a format for providing the requested information. Instructions on how to use the template are included in the ‘Instructions’ tab of the spreadsheet.

We are requesting information on, and supporting evidence for, any current or planned (next 3 years) investment in broadband infrastructure in the county of Northumberland. We have pre-loaded the ‘Reference Data’ tab of the attached spreadsheet template with the relevant post codes, and the number of premises per post code as the source of the pre-loaded post code and premise data. This data has been obtained using Northumberland County Council’s records from Local Land and Property Gazateer.

We are requesting information on the post codes, and the number ofpremises within each post code, covered, or planned to be covered, by your broadband infrastructure investment. We are asking for information on coverage of Basic Broadband and NGA coverage separately to enable us to map the Basic Broadband and NGA White/Grey/Black maps required for State Aid purposes. By ‘covered’, or ‘passed’, we mean that fixed network infrastructure is available to the premises, potentially subject to a final drop connection, or that the premises are able to receive a suitable quality radio signal (in the case of wireless or satellite coverage), potentially subject to the installation of a suitable antenna.

We have set the speed criteria for Basic Broadband White to be less than or equal to 2Mbps.We have set the speed criteria for NGA White to be less than or equal to 15Mbps. It has been set at this level to ensure compliance with the requirement in the EC State Aid Decision that public funding granted under the scheme shall ensure a ‘step change’ in broadband capability (typically provides at least a doubling of average access speeds).

As well as providing details of NGA coverage, we require details of coverage capable of receiving Superfast Broadband speeds, defined as >24Mbs.This information is necessary for us to determine the likelihood of Northumberlandreaching the governments policy commitment of 95% Superfast Broadband by 2017, and as an indicator to meet the European Policy commitment of 100% Superfast Broadband Coverage by 2020. We consider it a key requirement to be able to report accurately on coverage using this specific speed threshold.

Alongside completing the attached spreadsheet or equivalent, any information provided in response to this Request for Information should include, but need not be limited to:

  • Detailed maps for Basic Broadband and NGA showing the existing coverage, and separately maps detailing the planned investment in Basic Broadband and NGA for the next 3 years.
  • Details of premises covered or passed i.e. post codes and the number of premises by post code, that fixed network infrastructure is available to the premises, potentially subject to a final drop connection, or that the premises are able to receive a suitable quality radio signal (in the case of wireless or satellite coverage), potentially subject to the installation of a suitable antenna.
  • A detailed description of the technology solution(s) deployed (or to be deployed) in your broadband infrastructure and where this claims to be NGA how this meets the reuirements of BDUK’s Technology Guidelines.
  • A description of the services/products currently offered including any usage or data caps, and separately those services/products to be offered within the next 3 years.
  • Upload and download speeds typically experienced by end-users, and how these may vary by factors such as distance, increased take-up or demand, contention, etc.
  • Installation, annual/monthly subscription, and additional volume or per-service tariffs for those services/products (identifying whether such tariffs are inclusive or exclusive of VAT).
  • Appropriate indicators of the quality of services (e.g. contention ratios, bandwidth allocation per user, etc), including any characteristics (e.g. latency, jitter) that are required to support advanced services such as video conferencing or HD video streaming.
  • Details and planned timing of roll-out of any future investments, including further investments required to cope with future increases in take-up and demand.
  • Evidence to substantiate actual or planned coverage claims, including business cases and evidence of available funding to enable plans to be fulfilled

Please supplement the required information above with any supporting evidence as you consider appropriate (e.g. links to public websites).

Please also note that further information may be required to substantiate actual or planned coverage claims, including business cases and evidence of available funding to enable plans to be fulfilled, if required we will contact you.

  1. Next Steps

Based upon the responses received as part of our OMR process, we plan to publish our proposed Interventions Areas for a 30 day State Aid public consultation commencing during August 2014. In parallel we will be preparing to run procurement(s) during the Autumn 2014period to establish new contracts to deliver the extended coverage.

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